Demand and supply are initially at Do and S, in the graph. Demand increases and new firms enter the industry; therefore, in the long run, demand and supply move to D¡ and S1. The long-run industry supply curve is SLR. Price Using the information in the graph, what conclusion can be drawn? Without question, this industry experienced economies of scale as it expanded. So S, S. In the long run, industry costs have remained constant. In the long run, industry costs have increased. In the long run, industry costs have decreased. D, D Output

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